Christopher & Banks Corp. is getting a reprieve on its credit facility.
The women’s apparel retailer entered into an agreement to extend its current senior secured revolving credit facility of up to $50 million. The deal also includes an additional $5 million through a first in, last out (FILO) loan, which is as an advance on unsold merchandise.
The transaction provides funding through August 3, 2023. The prior facility was scheduled to expire in September 2019. Wells Fargo Capital Finance will administer the loan.
The amount of credit that is available under the amendment is determined to be a percentage of the value of eligible inventory and credit card receivables. The funds may be used for working capital, issuance of letters of credit, capital expenditures and other corporate purposes, according to the company.
"We are very pleased to have extended our credit facility through 2023,” said Keri L. Jones, president & CEO of Christopher & Banks. “Although we do not have any outstanding borrowings under this facility, the available funds will provide additional support for us as we execute on our operating and strategic plans.”